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A qualitative Study on beedi production and consumption
In Sri Lanka
June 2014
Research and Evaluation Programme
Alcohol and Drug Information Centre
1
Acknowledgement 3
Summary 4
Chapter One
Background and Objectives 6
1.1 Introduction 6
1.2 Background 6
1.3 Objectives 7
1.4 Study approach 7
Chapter Two
Literature Review 9
Chapter Three
Methodology 11
2.1 Introduction 11
2.2 Setting 11
2.3 Data collection tool 13
2.4 Sample 13
2.5 Data analysis 13
2.6 Ethical consent 14
2.7 Limitation 14
2.8 Summary 14
Chapter Four
Study Findings; Beedi Smoking 16
4.1 Introduction 16
4.2 Consumption 16
4.2.1 Characteristic information 16
4.2.3 Pattern of beedi consumption 17
4.3 Reasons for beedi consumption 18
4.4 Attitudes towards smoking beedi 19
4.5 Expenditure on beedi smoking 19
4.6 Summary 20
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Chapter Five
Study Findings; Beedi Production and Sales 21
5.1 Production 21
5.2 Sales 24
5.3 Type of beedi and prices 25
5.4 Summary 26
Chapter Six
Conclusions and Recommendations 28
References 30
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Acknowledgement
At the beginningthe Research and Information Programme of ADIC wish to express deep
gratitude to the Deapartment of Excise and the officers for giving their cooperation in getting
valid and accurate information of beedi producers in Sri Lanka.
Moreover, special thanks go to district coordinators of ADIC in Rathnapura, Kegalle, Jaffna,
Anurathapura and Kurunegala for their valuable support in conducting interviews in order to
collect data, with beedi consumers, producers and sellers in particular districts. Research and
Information Programme of ADIC convey its gratitude to undergraduate social work students of
National Institute of Social Development for the help in data collection in Gampaha district. All
the field enumerators turned the whole process of data collection into successful one.
Finally, the sincere gratitude goes to all the ADIC staff members for their continuous support to
the study.
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Executive Summary
Summary: A Research Study on Beedi Production, Sale and Consumption is Sri Lanka
The study was conducted in seven districts, namely Kegalle, Gampaha, Rathnapura, Kurunegala,
Anuradhapura, Monaragala and Jaffna. These districts were selected as majority of the beedi
producers registered under the Department of Excise were from these districts. Anuradhapura,
and Monaragala were included in the study as producers reveal that majority of the distributions
were made to these districts. The study population included beedi producers, selling shop
owners and users.
Literature available regarding cigarettes and beedi reveal that considering smoking tobacco, 96%
accounts for cigarettes globally and in Sri Lanka, it is 97.1%. Beedi smoking is 2.6% in Sri
Lanka.
Producer Perspective
There are considerable numbers of direct and indirect parties engaged in beedi industry
whose income generation depends on beedi production. Majority of the makers are
females who make beedi at household level.
Beedi production has decreased during the past years due to the decrease in demand.
In Kegalle district, there are societies at village level to look into welfare of the grass-root
level beedi makers and regulate intermediatory dealers
Beedi producers Ceylon Tobacco Company as a threat to beedi industry.
Although there are wide range of beedi types, ‘Sudu’ beedi is the most common beedi
among producers because it is considered as superior in quality and price compared to
other types.
Selling Point Perspectives
The sale of beedi has a decreasing trend
Most sales are reported from rural areas in the districts
94% of the shops which sold beedi, sold cigarettes as well
Majority of the beedi buyers are above 45 years (60%)
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Most of the beedi users are also using cigarettes (60%) and they are buying the cheapest
cigarettes rather beedi when then have enough money
Consumer Perspective
Majority of the beedi consumers are above 50 years and they are daily users
Characteristic of the users were similar. Most of them were engaged in daily wage
occupations such as laborers, helpers
Their level of education is low
On average 14 sticks per day were used by daily users (Mini=1, Max=40)
Average expenditure on beedi is Rs.1170/- (Min.Rs.100/-to MaxRs.6000/-)
Most common reasons for usage were “support for late night jobs”, “to get rid of the
tiredness”, “to pass time”, etc which were linked to their occupations. This implies that
the users are trapped in the common myths attached to tobacco smoking.
Beedi users believe that consuming beedi is more dangerous than smoking cigarettes. They have
come to this conclusion because beedi smells than cigarettes.
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Chapter One
BACKGROUND AND OBJECTIVES
1.1 Introduction
This report presents the findings of a qualitative study on beedi production, sales and
consumption in Sri Lanka. The production of beedi base on major fifth districts which most
manufactures are been reported. The sales and consumption of beedi base on the most sales were
reported districts. Base on the manufactures information two additional districts were added for
the study.
This study will help to understand the situation of beedi production and consumption in Sri
Lanka. Also this will help to see context of different between smoking cigarettes and smoking
bidi. Policy makers, health professionals, academia or any other person who seek information
about beedi in Sri Lanka can use this study.
1.2 Background
According to (NCD, 2010); non communicable diseases (NCD) account for 90 percent of the
diseases. Further it has found that major modifiable risk factors for the NCD are tobacco use,
unhealthy diet, lack of exercise, and harmful alcohol use. Thus there is an important role to do more
prevention towards NCD and specially to prevent all the modifiable risk factors. As tobacco is the number
one risk factor more attention should be given towards tobacco prevention. Tobacco use could be seen as
smoking tobacco and non smoking tobacco. According to Tobacco Atlas 4th Edition smoking tobacco
form is the most prevalent. There are different types of smoking tobacco but as well as in globe Cigarettes
is the most prevalent smoking tobacco in Sri Lanka. It accounts for 96% in the world sales (Tobacco
Atlas 4th Edition). The same figure can be seen in Sri Lanka which is 97.1% smoke cigarettes, 2.6%
smoker beedi and 0.3% smoke cigars (ADIC, 2013). According to the facts there is more action
towards cigarettes. That is why more studies have carried out on cigarettes and less on beedi.
Even though more studies have to carry out on smoking cigarettes this study is aim fill the gap of
information about bidi consumption in Sri Lanka.
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1.3 Objectives of the Study
There is a lack of studies has been carried out on beedi in Sri Lanka. So Alcohol and Drug
Information Center tried to fill the knowledge gap about the beedi consumption. The main
objective of this study is to understand the situation of beedi production and consumption in Sri
Lanka. The information about beedi production will base on the Department of Excise
commissioner Sri Lanka and manufactures.
The study also seeks following specific objectives
To investigate the beedi manufacturing in Sri Lanka
To identify the beedi sales in Sri Lanka
To study on beedi consumption in Sri Lanka
To make an comparison of beedi and cigarrets smoking in Sri Lanka
1.4 Study approach
This is a more qualitative study which has carried out for seven districts in Sri Lanka exploring
the beedi consumption. Tobacco smoking is negligible among women in Sri Lanka [smoking
prevalent among male: 29.9%, female 0.4% (WHO.2013)] thus this study is focus only about the
male population who smoke beedi. Prior to collect the primary data literature review was carried.
Though it has been identified that beedi consumption is prevailing among low socio economic
groups in Sri Lanka (WHO, 2006) there is no information where the majority beedi consumers
reported. Thus this study has used special method to track where the most beedi consumers are
prevailing.
Well trained field officers were occupied to collect the primary data from the seven districts.
They were thoroughly made aware about the objectives of the study. All the field officers were
selected who already have experiences in the field work and graduate students who follow Social
Work degree.
Questionnaires were used as a data collection tool and it was pretested in the district Colombo.
Field Officers feedback and their experience were also collected to find more qualitative
information. Field work was carried out in the month of June 2014.
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Table: 1 Sample Distribution
Districts Manufactures Sellers Consumers
Kegalle 3 6 30
Gampaha 2 5 25
Rathnapura 2 5 25
Jaffna 2 5 25
Kurunegala 2 5 25
Anuradhapura - 5 25
Monaragala - 5 25
Total 11 36 180
All the interviews were conducted in local languages. Apart from Jaffna all the other districts
were used interviews in Sinhala language. In Jaffna Tamil languages was used for the interviews.
Collected data was transcribed in English. Data was analyzed by using Statistic Package for
Social Sciences (SPSS 20) and some data will be presented by using table, graphs and charts.
Thematic analysis was used to analyze the field officers data.
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Chapter Two
LITERATURE REVIEW
Beedi have been identified as the cheapest smoking tobacco product in Sri Lanka and mainly
used by low socio-economic group (WHO, 2006). WHO (2006) further mentions that, beedi
consumption is reducing in Sri Lanka. Beedi manufacturing has been identified as a small-scale
business in East and North Central part of Sri Lanka. It have identified that consumption of beedi
is higher in east and north central part of the country as cigarettes were not freely available in
those area due to civil disturbances (WHO, 2006). However in Sri Lanka the biggest tobacco
smoking production is cigarettes and CTC (Ceylon Tobacco Company) keep their monopoly for
the cigarettes production. Since war ended North and East part of the country have not been
exposure much to cigarettes. But this has been changed during past few years. After the war
ended cigarettes has largely marketed to North and East (CTC, 2011).
According to Kariyakarawana (2013) there was no specific tax for beedi companies before 2009.
“The gazette numbered 1625/1 dated October 26, 2009 brought those orders to be put into effect
only after March 1, 2010” Kariyakarawana (2013). According to above gazette all the companies
who export and manufacturing beedi has to register under the department of excise. Further
Kariyakarawana has mentioned that there were 800 traders have register after the gazette. And
most of them have identified for beedi production from the areas of Galewela, Badulla and
Hanguranketha (Kariyakrawana, 2013). According to Kariyakarawana (2013) beedi production
has mention as increasing production thus government has given guidelines to produce beedi.
Thought Kariyakarawana (2013) said that increasing the production it is not visible of increasing
the consumption of beedi. At that time the price of beedi stick was Rs. 2.00/- and the price was to
be increased. According to the article Somarathne (2010) Excise Commissioner General
Wasantha Hapuarachchi has told that 200,000 people may depend on the income of beedi
business for their living.
CSE (2013) also mentioned that the beedi consumption still remaining among low-income
groups in the country and among the consumers most are elders (above 40years). In the report
CSE (2013) say that beedi smokers are declining and they are only smaller market for beedi.
However according to the CSE (2013) beedi and illicit imports have been identified as a one of
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threat to CTC. According (JKSB, 2008) CTC has total marketable space for 4.8 billion sticks
while beedi market is around 2.3 billion sticks. The very similar number of market space for both
sticks has given by CSE (2013). According to the ADIC (2013) there have been identified above
15 years male 32.5% are current smokers and among current smokers 97.1% smoke cigarettes,
2.6% smoker beedi and 0.3% smoke cigars. However it is interesting to look above figures that,
if beedi consumption is very low compare to cigarettes consumption how beedi market becomes
approximately half of the cigarettes market space.
According to the facts and figures still there are beedi production and consumption remaining
among the low-socio economic communities and especially among adult population.
There is a doubt about the law implementation for those tobacco products. However it can see
that beedi as well as cigarette consumption declining in the country.
There is lack of studies have been carried out for beedi consumption in Sri Lanka.
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Chapter Three
METHODOLOGY
3.1 Introduction to chapter three
This chapter presents the method how study has been carried out. It present the setting of the
study has taken. In this study specific method has been use to capture the beedi consumers and it
explains with a figure 1. It also explains the data collection tools which have used for this study.
The study sample also has given in this chapter. Data analysis of the study also explains in the
study. Ethical consents were considered highly and it has explains in this chapter. However there
were some limitation in this study and it also discusses in this chapter.
3.2 Setting
There was no data about beedi consumers to capture for the study. Thus the method of collecting
data from beedi consumption was held in different stages. The first stage was to identify the
beedi producers in Sri Lanka. According to the Tobacco tax act no.08 of 1999 all the beedi
manufactures and importers have to register under the Commissioner General of Excise. The list
of registered beedi manufactures was observed. The number of manufactures by district was
listed and first five districts were selected for the study to interview the manufactures (see the
table 1). Conveniently selected beedi selling shops were questioned on where they buy beedi.
According to the information most popular manufactures were selected to interview. Base on the
manufactures interview first five places selected to conduct interview on beedi selling (shops)
where most beedi sales are reported. Interview on beedi consumption was carried out from the
beedi users who are around the shops.
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Figure 1: Steps of the data collection
5 Districts
1. Kegalle
2. Gampaha
3. Rathnapura
4. Kurunegala
5. Jaffna
Manufactures registry
Beedi selling shops
Beedi selling shops Beedi selling shops
Beedi selling shops Beedi selling shops
Manufactures
Manufactures Manufactures
1st Step
Department of Excise
2nd Step
Inquiry on Shops
3rd Step
Interview on Manufactures
Beedi selling shops Beedi selling shops Beedi selling shops Beedi selling shops Beedi selling shops
Beedi users Beedi users Beedi users Beedi users Beedi users
4th Step
Interview on sellers
5th Step
Interview on users
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3.3 Data collection tool
Shops who are selling beedi were interviews using unstructured interview (2nd step – figure 1)
and collected the information on beedi manufactures in respective districts. Structured
questionnaires were used to collect the data from beedi manufactures (3rd step – figure 1), beedi
seller (4th step – figure 1) and from beedi consumers (5th step – figure 1). Al the questionnaires
were pretested and well explained to the field officers.
3.4 Sample
The primary data source was the beedi consumers which is not significantly visible in any
community in Sri Lanka. However the overall sample size of the beedi consumers is 180 from
seven districts (see table 1). The shops were the catalyst from producer to consumer thus it
interviewing of beedi was very important part of this study. The sample size of the shops is 36
and it was distributed among the seven districts. In this study 11 beedi producers were
interviewed in 5 districts. The most beedi producer district which was Kegalle has done 3
interviews while the rest four district sample is two beedi producer. The sample distribution by
the districts and type is shows in the table 1.
3.5 Data analysis
As there are structured interviews SPSS 2O software is uses to statistical analyze the data. There
are three different types of structured interviews and all the analysis is presenting in this study
finding. Field officers field notes was analyzed thematically which has more qualitative
information for this study.
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3.6 Ethical consent
Socially it has given low value for whatever smoker in Sri Lankan society and there is a legal
constrain for smokers. Thus most of the time smokers are not visible in public places. There for
some smokers are not ready to reveal that they are smoking tobacco. In this study beedi seller
also was interviewed and they are reluctant to tell about their sales. The producer is also are not
ready to reveal their production. Some of them were doing small scale production and they were
threaten form some authorities. Therefore taking their information was a challengeable task for
the field officers. Anyway field officers were train to make repot with all the recourse persons.
All the interviewee was obtained ethical consent verbally. None of their personal information
was collected during this study.
3.7 Limitation
It was reported that there are small scale beedi producers in most of the district which is
negligible when it come to the proportion of smoking tobacco market. However this study is only
limited to selected district with a rational which has most production are reported and expanded
to further two districts which has more beedi sales.
3.8 Summary
Five stages were followed in order to identify the beedi producers in the country. Department of
Excise was contacted to observe the list of registered beedi manufacturers. Seven districts were
identified to carry out the study as those districts consisted with highest beedi manufacturers and
consumers. Five shops were inquired from each district to gather information regarding their
manufacturers. Three manufacturers were interviewed from each district. According to
manufacturers information top five beedi selling shops were indentified from each district to
collect data. Finally, 5 beedi users from each shop were identified in order to gather the
information from beedi users from each district.
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Structured interviews were conducted to collect information from beedi manufacturers, beedi
sellers and beedi consumers. Unstructured interviews were used to gather information from
shops who were selling beedi. 180 of beedi consumers, 36 beedi selling shops and 11 beedi
producers were interviewed in the study. SPSS 20 software was used to analyze the statistical
data in the study. Field notes from field officers were analyzed thematically since it was
consisted more qualitative information.
Mostly smokers are not visible to the society in Sri Lanka. Hence, they are not stepping forward
to reveal their smoke consumption. Not only the beedi consumers but also beedi sellers and
producers also were not forwarded to supply the information since they had small scale
businesses and had threats from some authorities. According to the reported information in the
study, it was obvious that compared to tobacco market in the country, the production of beedi
was very slight.
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Chapter Four
STUDY FINDINGS; BEEDI SMOKING
4.1 Introduction to beedi smoking
This chapter discusses about the beedi consumption. Mainly characteristic of the beedi
consumers, attitudes and reasons will be explained. This chapter also gives an idea about
initiation and pattern of the beedi consumption. Most of the time beedi consumers have a relation
with smoking cigarettes. Together with discusses about smoking beedi consumption this chapter
also discusses about their smoking cigarette.
4.2 Consumption
Beedi consumers are not significantly visible in any part of the country but most of the beedi
consumers were reported from rural areas. Monaragala and Anuradhapura district was reported
as most beedi selling districts. Therefore this study has been carried out in the district of
Anuradhapura and Monaragala.
4.2.1 Characteristic information
However beedi consumption was only significant among the elderly people. Especially almost
all the beedi consumers were over 45 years and most of them were above 50 years. There was
very few who smoking beedi are in middle age. In this study the minimum age of beedi
consumer was reported from Kegalle district where most beedi producers were reported.
However average age of the beedi consumer was 50 years while most of the beedi consumer’s
age was 52 years.
It was interested to see that the entire beedi consumer’s charastaristic are very similar. Their
level of education was very low only very few of them have passed the grade ten. Some of them
had not gone through their primary education. Almost all of them were daily wages base
employees while some of them are unemployed. Labours in various fields, maisents (Bass),
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helpers and very small scale business people such as lottery sellers are the most reported
employment of beedi users. There were very few beedi consumers who are retired. It was
significant that beedi consumers are were idling rural areas.
4.2.3 Pattern of beedi consumption
Most of the beedi consumers were consuming beedi on daily base. Among the daily beedi
consumer’s minimum sticks per day was 1 stick while maximum was 40 sticks per day. It is
interesting to see that five users who consume 40 sticks per day reported from Jaffna district
while one user was reported from both Rathnapura and Monaragala districts. The average sticks
per day were 14 years while most of them have used 20 sticks per day.
number of stiks group
Frequenc
y
Percent Valid
Percent
Cumulative
Percent
<=10 73 46.8 46.8 46.8
11-20 68 43.6 43.6 90.4
21-30 8 5.1 5.1 95.5
31-40 7 4.5 4.5 100.0
Total 156 100.0 100.0
In this study it was questioned that their initiations for the beedi smoke. The minimum age was
reported one user have been started smoking beedi when he was in 11 years and it was reported
from Gampaha District. Most of beedi users have started smoking beedi when they were 20 years
old and average age for the initiation for beedi was 21 year.
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4.3 Reasons for beedi consumption
The reasons beedi consumption were multiple and it has given in the following chart (Graph 1).
According to the data most of the beedi consumers have mentioned that they use beedi to
overcome their tiredness when they are doing their jobs. Most of the beedi users were daily
wages workers and who are doing physically hard work thus they believe that beedi make them
less tired. Thus looking at the rest of reasons they have given are the myths they believe and
most relating with their socio economical status and culture.
Graph 1: Reasons for smoking beedi
4.4 Attitudes towards smoking beedi
All the beedi users though that beedi smoking give them a low social image in their community.
In the study it has been observed that beedi consumers are reluctant to say that they are smoking
beedi but when they are questioned about smoking cigarettes they were answering passionately.
The interested point found this study was most of them having not tried to quit smoking beedi in
their lifetime. According to the data 79% of the beedi smokers not thought to stop their behavior.
However some of them belive that cigarettes make less health consequences than beedi as beedi
are smellier than cigarettes.
31.40%18.10%
17.30%5.80%
4.40%4.40%
2.70%2.70%
2.20%2.20%2.20%2.20%
1.30%1.30%
0.90%0.90%
0.00% 10.00% 20.00% 30.00% 40.00%
overcome tiredness/due to jobas a habit
no special reasonsafter a meal or a tea
avoid lonelinesscigarettes are expensive to buy
get tethers with friendspass the time
have a boost to workfrom childhood
for funavoid sadness
stay upwhile drinking alcohol
overcome coldnessgoing for toilet
%
Re
aso
ns
Reasons for smoking beedi
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It was asked that what the consequences of smoking beedi. According to the findings 36% of
them believe that there are consequences of smoking beedi. Financial problem was the major
problem they saw (45%). The second major problem they mentioned was health issues (39%)
such as it makes cough, make body waste. The third issue what smoking beedi was that their
family members don’t like that behavior (9%) including wife always scolding them, their
children done like. However some of them (5%) mentioned that make smelly themselves when
they smoking beedi.
4.5 Expenditure on beedi smoking
The price for beedi is not stable as there are various brands of beedi and different types of beedi.
The cheapest beedi sales on the price Rs.2/- which called Thora beedi and it consider the
smallest type of beedi in the market. The range of beedi prices distributed as Rs.2/-,2.50/-,3/- and
3.50/-. As there were few users who are smoking beedi on few times a month didn’t spend daily
thus the expenditure on beedi consumption was analyzed on monthly base. According to the
findings average monthly expenditure on beeid was Rs. 1170/- while most of them are spending
Rs. 750/- per month. However minimum monthly expenditure was Rs. 100/- and maximum was
Rs. 6000/-.
4.6 Summary of beedi smoking
Beedi smokers are not a visible group as cigarette smokers, however they can be found mainly
from rural area in the country. Proving that, Monaragala and Anuradhapura were identified as the
districts which have highest beedi sales. Most beedi smokers are from elder population which
over 50 years of age. It was found out that the most beedi smokers were in a same educational
level and they were not well educated. Beedi users were engaged in low income level
occupations.
One of the important social facts found out in the study was that, people have used to measure
the social status of smokers by observing the type of their smoke. Beedi smokers felt backward
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attitude to reveal their consumption, though they were felt smoking cigarette was uplifting their
social status. All most all the beedi users were not thinking about eliminating their consumption.
Only less than half of respondents believed that there are consequences of smoking beedi. Major
two reasons were financial problems and health issues. Most of them also revealed negative
feedback from family as a consequence of beedi smoking.
Chapter Five
STUDY FINDINGS; BEEDI PRODUCTION AND SALES
5.1 Production
The study aimed to gain an overall understanding regarding the beedi industry in Sri Lanka.
Therefore, the study pays its attention not only on beedi consumers but also on beedi production
and supply. Eleven beedi producers were interviewed from five districts (Rathnapura, Kegalle,
Gampaha, Jaffna and Kurunegala); these districts were recorded as the main districts which have
highest beedi consumption.
Four beedi producers were interviewed from Kegalle district since the highest beedi consumption
in the country recorded from there. Most producers had started their production in 1980’s.
Altogether six producers were interviewed from the districts, Gampaha, Jaffna and Kurunegala.
One producer was interviewed from Rathnapura district. 82% of producers had started their
beedi production between 1965 and 1995. Rest of the producers has started the production in
recent past.
Graph 2: Sample distribution of beedi producers
37%
18%18%
9%
18%
Beedi Producers
Kegalle
Gampaha
Jaffna
Rathnapura
Kurunegala
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Beedi production per month was questioned from the producers. It was found out that the
number of beedi production per month is varies with the demand. Each producer decides their
production with the demand they get. The producer from Gampaha district were producing 15,
00000 beedi sticks per month which was the highest among all the producers in the sample and
he had 600 workers working for him directly and indirectly. They have number of workers work
under them in their business according to the size of the production. Average number of sticks
produced in a month by eleven producers in the sample was found out as 2,97000. It was found
out that one worker produce 3820 of average beedi sticks in a month. Number of workers was
varying from the number of sticks produced. All the producers had direct workers who work at
producers’ place but most of the workers work at their own houses. During the study it was
found out that women in the areas such as Kegalle engage in beedi production at houses as a self-
employment. They earn Rs. 200 for 1000 beedi sticks. People take orders from the large-scale
beedi producers and they work at home. It was found out that there are societies in villages
which established by the village level beedi producers to collect and transport beedi and raw
materials. Those societies have the control in buying and supplying beedi within that specific
area. There are small-scale beedi producers who buy raw materials from Colombo and produce
beedi in their houses. Some of them have specific label names for their productions. As
mentioned in the literature (Somarathne (2010)); it is obvious that there are number of families
depend on beedi production as their income generation activity.
Though there is a considerable amount of beedi production in these districts, situation in the
market is not supportive for the producers. According to their opinions the beedi production has
gone down during the past years. 82% of producers mentioned that their production has
decreased over the years. The rest of the producers mentioned that their production hadn’t
change over the years. There was no producer who mentioned that their production had increased
over the years.
Beedi producers buy raw materials for their production mostly from Colombo. Apart from
Colombo, producers buy raw materials from Warakapola, Thanamalwila, Barandana and
Hambantota. In Jaffna, it was found out that some of the producers receive raw materials from
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India. There are different types of beedi produced by using those raw materials. Beedi producers
supply different types of beedi to the market.
Some produce only one type of beedi but there were producers who produced more than one type.
The beedi type call ‘sudu beedi’, was widespread among the producers. There were seven
producers who produced ‘sudu beedi’. ‘Sudu beedi’ is a beedi type which has a proper cover in
white. It is one of the beedi which sells in high price. Apart from ‘sudu beedi’ there were
‘Indika’, label beedi’, ‘non-label beedi’, ‘long beedi’ and ‘normal beedi’. ‘Label beedi’ contains
a label around the stick and it has higher price than ‘non-label beedi’.
The study paid the attention on the problems of beedi producers in production and supply. All
the producers in the sample faced problems in production and/or supply. Production was affected
by whether changes in the areas. 45% of the producers mentioned that the government rules and
regulation and the acts of Ceylon Tobacco Company (CTC) have become as barriers for their
production. Producers faced problems in production due to frequent changes in government
guideline and regulations. They perceived the registration process of their production as a barrier.
27% of producers faced difficulties in drying beedi in rainy seasons. Moreover they face
transportation problems in those days since they have to bring produced beedi from remote areas
in the districts. Producers had the problem in higher cost of production. They had to pay a
considerable amount from their income as salaries to workers and they had less profit. Some of
the producers faced difficulty in finding raw materials for the production.
There were problems in supplying face by the beedi producers. The supply was mostly
influenced by decrease of consumers. According to 36% of producers, the number of beedi
consumers is low than early times. Producers face challenge in continuing their supplies due to
the decrease of consumers. Moreover, this situation has effected on their production too. 18% of
producers expressed that their supply is influenced by the current rules and regulations. Beedi
producers mentioned that they face threat in their industry from the cigarette industry. According
to them, at the present time people give more priority to cigarettes than beedi. The CTC has
captured people by their marketing strategies and beedi producers feel that those strategies try to
eliminate the beedi industry by taking attention from people. It can be true because during the
study number of marketing strategies by CTC such as posters could see in the shops.
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Productions in all five districts in the sample provided their supply mostly to Monaragala and
Anuradhapura. Those districts were in the first two districts in demand. The supply was also
distributed to areas in Gampaha, Rathnapura, Kegalle and Nuwaraeliya districts.
According to the government rules and regulations the beedi producers should register their
business under the Department of Excise. 82% of producers in the sample had registered their
business and the rest haven’t. Some producers were in the process of getting registered and some
had small-scale production at their houses. Respondents have got registered in three main
government bodies; town hall, pradeshiya sabha and the department of excise. 67% of registered
producers had got registered their business under the Department of Excise and the rest have got
registered under the town hall or under the pradeshiya sabha in the relevant areas.
Annual income of the producers was examined in the study. Since there is no control price for
beedi and since there are number of types; prices of beedi show a discrepancy from type to type
and district to district. In addition, there are different methods of selling beedi. Consumers can
buy any number of beedi as they desire, beedi packets, beedi in the rapping and there are
methods where consumers can buy with the money they have. For an example beedi consumers
can buy three beedi for five rupees. Likewise, there are different types of methods of selling
beedi and those differ according to the type and the district. Producers earned profit between to
30 cents and 60 cents from one beedi stick. It is between Rs. 100 – 150 from one beedi bundle.
Average monthly income of the beedi producers was nearly Rs. 1,11000.
5.2 Beedi Sales
Shops who are selling beedi have been held for several years and they also have selling beedi for
longer period of time. The types of shops who were selling beedi were different. Most shops
were permanent shops while some were petty shops. Some were tea shops and some were retails
shops. According to the field officers beedi selling shops are not significant like shops which are
selling cigarettes. However most of the shops who were selling beedi also were selling cigarettes
(94%). According to the observation there were able to found the cigarettes buds in shop
premises but beedi buds were very less or not visible.
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5.3 Types of beedi and prices
There are various brands of beedi in the market and in this study it was able to found that 30
different brands from entire seven district. However these brands were different from district to
district and place to place. It was identified that those different types of beedi sample from the
market and each of their prices were varying. The cheapest beedi was selling in Rs. 1/- in the
market which has no label and smallest type. The different branded smaller beedi are selling for
for Rs.2/-. There was able to found that one brand which is called Indian beedi one stick was Rs.
2.50/-. “Sudu beedi” (White beedi) was identified as the premium type and it was sold for Rs.
3.50/- in the market. Some of beedi brands and types were registered with a number and some of
them were not registered number in the rapping.
According to the beedi sellers most beedi buyers are from low socio economical stratum and
they buy beedi as they have no money to buy cigarettes. It can be proven by most of the beedi
users are consuming cigarettes. However some were pointed out that even the regular beedi
consumer are buying cheapest cigarettes when they have more money. For example they buy Rs.
10/- cigarettes which are branded Captain rather than buying beedi when they have enough
money.
On daily basis average number of beedi sales was 172 sticks while most shops sale 100 sticks per
day. The maximum number of beedi sales per day was 580 sticks and minimum sales were 10
sticks per day. Some of shops mentioned that here is a special time such as festival seasons and
road construction period sales is higher than normal days. They were selling sticks as wells
packets. In a bundle of beedi contain 400 sticks and selling one bundle get Rs. 150/- profit. The
profit of selling one stick is varying from Rs. 0.30/- to 0.50.
According to the shops 60% of buyers are above 45 years and 24% are 31-45 year range. Only
13.3% of the buyers were in the range of 16-30 years while 2.2% are <15 years.
It was questioned that what the benefits from selling cigarettes from shops are. According to the
answers 75% of them mention that they get financial profit from selling beedi. 13.9% mention
that the beedi buyers are tend to buy tea as well short eats from their shops as well 11.1% said
25
they are tend to buy other goods from the shops. Those are the common answers from the shop
owners and it was questioned that how many proportion of them are from the customers come to
shops for tea and for short eats or to buy other good. Then they were calculated and realized that
only fewer buy beedi while buying rest of the goods. Some shops owners said that they selling
beedi and cigarettes because of their customers asking for them otherwise they are not selling
them.
In this study all the shops were asked that weather is there any issues they face while selling
beedi are. Only fewer said there is some issues such as excise department checking, beedi is so
smelly, most buyers try to get for credits, some beedi users are lighting in the shops and some
also demanding for one type of beedi.
However according to the information more than half of shops mentioned that sales of beedi is
decreasing within the last few years. Only one shop which was in Monaragala district has
mention that there is a growth during the past few years. Rest of them has mention that there is
no change of beedi sales.
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5.4 Summary
Production is one of main factor in beedi industry. The highest beedi production was recorded
from Kegalle district while Rathnapura, Gampaha, Jaffna and Kurunegala also produce
considerable amount. All most all the productions had started between 1965 and 1995. It was
obvious that the beedi producers are located in the rural areas of each and every district.
Average monthly production of beedi is 2,97000. Producers had direct and indirect workers.
Number of indirect workers was higher than the direct workers. Indirect workers engaged in
beedi making at their houses. They take orders and raw materials from producers. There are high
amount of women engaged in making beedi at houses as a self-employment and they earn
average amount of Rs. 200 by making 1000 beedi. Producers bought raw materials chiefly from
Colombo and there are other places where they could find raw materials. Producers in Jaffna
expressed of buying raw materials from India. There were six main types of beedi among the
producers and type of beedi call ‘sudu beedi’ is the main type of beedi which most producers
shares in the production. There are separate societies of beedi makers in villages. These societies
take care of buying and supplying of beedi including controlling prices. Producers earned a profit
between 30 cents and 60 cents from one beedi stick. The average amount of monthly income was
Rs. 1, 11000.
Though, the beedi industry was well developed one in the past, it doesn’t demonstrate as a
successful industry now. It was highlighted by majority of the respondents that the production
has gone down over the years. Producers face problems in production and supply. Government
regulations and guidelines acted as barriers in the production. In addition, high cost which had to
spend for raw materials and salaries of workers were another problems faced by beedi producers.
Producers faced influenced in their supply due to the decrease of consumers for beedi. Producers
specially mentioned regarding the feeling of threat from CTC to their industry. The marketing
strategies of CTC had negative impact in the demand of beedi.
Monaragala and Anuradhapura was identified as the places where the beedi sales are in high rate.
However, beedi sales were at considerable stage in districts such as Gampaha and Nuwaraeliya.
82% of the producers had got registered their business under a government body. These
government bodies were identified as department of excise, town halls and pradhesiya sabha.
27
Shops which were selling beedi have been engage in that for long time period. Among these
shops most were permanent shops and there were few petty shops. It was found out that the beedi
selling shops are not significant to the society as much as cigarette selling shops. Even though
those were not significant, 94% of these shops were engaging in cigarette selling too. In the
observation, it was obvious that there were fewer beedi buds in shops premises than cigarette
buds.
There were 30 different brands found out in the districts. Beedi did not carry one specific brand
or size. Different types of beedi were found out from each district and the prices vary according
to the sizes and brands. According to the findings ‘Sudu beedi’ is the most expensive beedi type
in these those districts. The important fact found out was that all most all respondents smoked
beedi since they do not have money to consume cigarettes. If they had enough money they went
for cheapest cigarette brand instead of buying beedi. As that Captain cigarette was well-known
among beedi smokers.
Nearly 200 beedi sticks sold daily as an average amount. The sales were little high in festival
times. 60% of beedi buyers were above 45 years which proves that majority of beedi smokers are
from elder population. Though the shop owners believed that they had more sales in the shop
from beedi consumers; later they have realized that they had more customers other than beedi
consumers. More than half of the shop owners expressed that the demand for beedi has decreased
within last few years.
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Conclusions and Recommendations
Conclusions
Beedi can be identified as the cheapest smoking tobacco products in Sri Lanka average
price is Rs. 2/- (Min2-Max3.5). The cheapest cigarettes type is Rs. 10/- (Min10-Max34).
Although beedi is the cheapest form of tobacco smoking 97% of the total tobacco
smokers are smoking cigarettes in Sri Lanka.
Majority of the beedi consumers are consuming cigarettes but most cigarettes users are
not consuming beedi. The image for a beedi consumer is low for the beedi consumer and
they are reluctant to reveal about their behavior. Image for a smoker is low for all kind of
tobacco smoke in the prevailing society. However among the smoker beedi consider as
the lowest.
Beedi manufacturing and sales can be seen as a small scale mainly home-based business
with no promotion or advertising cost at all. In Sri Lanka, cigarettes production and sale
is a monopoly of Ceylon Tobacco Company which is owned by British American
Tobacco-BAT. BAT owns more than 92% of the shares of CTC. Tobacco Company is
engaged in subtle promotions due to complete ban in direct and indirect promotions,
sponsorships and advertising as per the NATA (National Authority on Tobacco and
Alcohol) Act 27 of 2006.
Beedi consumption is visible among low-income groups in the country and mostly they
are elders above 40 years (74%). Most beedi consumers are having minimal educational
background or no education at all. They are mainly engaged in daily wage labor jobs.
Cigarettes smokers are spread across different age groups (15-24 youth- 27.4%, 25-39
middle age- 34.2% and above 40 43.3%), economic and education conditions.
Beedi smokers are declining and the producers and sellers claim that the production and
sales decreasing. Most common reasons for beedi usage were “support for late night
jobs”, “to get rid of the tiredness”, “to pass time”, etc which were linked to their
occupations. This implies that the beedi users are trapped in the common myths attached
to tobacco smoking. However majority of the cigarette smokers claim that they smoke
without any obvious reason.
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Recommendations
1. Awareness programme should address the myths among beedi smokers regarding beedi
smoke such as good for tiredness.
2. Awareness or prevention on beedi consume should address only among the people who
consume beedi, such characteristics are; low socio economic, rural communities’ as well
elderly people.
3. The prevailing image for beedi consumer which is low has to maintain as it is help to
prevent others from the consuming beedi especially among younger generation.
4. There is no need to promote beedi from any media as there has no promotional strategies
such as Tobacco company does (subtle promotions through media)
5. Alternative income sources has to be introduce for the beedi producers as they are facing
declinie of beedi sales.
30
References:
ADIC (2013), Spot Survey on Tobacco Consumption- July 2013, Alcohol and Drug Information
Centre. Colombo.
CTC (2011), Annual Report 2011. Ceylon Tobacco Company. p 23.
CSE (2013), Ceylon Tobacco Company PLC (CTC.N0000), Capital market development
initiative by the Colombo Stock Exchange in association with Amba Research, Available from: http://www.cse.lk/cmt/upload_report_file/460_1384255423645.pdf [Accessed: 19/02/2014].
JKSB (2008), Ceylon Tobacco Company (CTC), John Keells Stock Brokers (Pvt). Available
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Kariyakrawana, K. K. (2013), Tax on smoking substitutes soon Beedi, cigars and pipe tobacco
under scrutiny, Sunday Observer. Available from: http://www.sundayobserver.lk/2013/03/31/fea10.asp [Accessed: 19/02/2014].
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Engelgau, M. et al. (2010) Prevention and control of selected chronic NCDs in Sri Lanka. Policy
Options and Action, October 2010 World Bank (2014), Available from: http://www.worldbank.org/en/country/srilanka/overview [Accessed: 05/06/2014]. WHO (2013), Country profile – Sri Lanka, Available from : http://www.who.int/tobacco/surveillance/policy/country_profile/lka.pdf?ua=1 [Accessed: 05/06/2014].